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With space research, Earth observation, and communication gaining pace, the demand witnessed in the global nanosatellite and microsatellite market has reached all-time high. The leading players in this market offer turnkey solutions such as manufacturing services, launch services, and data processing in order to stay competitive and strengthen their market positioning, finds Transparency Market Research (TMR). Some of the most prominent names in the market currently observing similar strategies are Lockheed Martin Corporation, Innovative Solutions In Space (ISIS) Group, Planet Labs, Inc., GomSpace, Clyde Space, Inc., RUAG Group, SpaceQuest Ltd., Skybox Imaging, Inc., Raytheon, and Sierra Nevada Corporation.
Opportunities in the U.S. to Continue Attracting the Leading Brands
“The U.S. has continued offering lucrative opportunities for players operating in the global nanosatellites and microsatellites market. With an increasing number of companies looking to expand their footprint in the nation, the U.S. is likely to remain at the fore of the global market through forecast period,” said a lead TMR analyst.
A case in study could be the advanced launch services extended by Lockheed Martin Corporation in the U.S. Despite its global presence the company is focusing on developing advanced launch services to cater to the specific requirements of the U.S. aeronautics and space systems industry. Furthermore, the UK-based company called Clyde Space Ltd. and Denmark-based GomSpace are other companies keen on expanding their operations in the U.S. to capitalize on the prevalent demand for space products.
Data Processing to Pace Higher than Other Solution-based Segments
The global nanosatellite and microsatellite market is forecast to exhibit a robust 12.1% CAGR between 2016 and 2024. Pacing at this rate, the global market is expected to be worth US$2.2 bn by the end of 2024, from a valuation of US$529.1 mn in 2015. Based on solution, the hardware segment emerged dominant holding over 35% of the overall market in 2015. However, data processing is expected to beat other solution-based segments in terms of CAGR over the forecast period. Regionally, North America will enjoy lead, while Asia Pacific is projected to exhibit fastest growth as the regional market for nanosatellite and microsatellite market.
Application Across Diverse Industries to Boost Growth
The fact that microsatellites and nanosatellites are witnessing application across diverse industries is one of the chief factors boosting the market. Nanosatellites and microsatellites are also used for mapping and navigation. Besides this, their most critical use is in scientific research and in the military and defense sector other than various commercial purposes. The technologies hve managed high acceptance because it has proven a more feasible alternative to large satellite. They can fulfil specific research requirements sans incurring huge expenditure, which has led to their widespread uptake in scientific research.
Despite the positive opportunities, the fact that benefits achieved from nanosatellites and microsatellites can only cater to short and medium term requirements creates a few hindrances for the market. The likelihood of saturation of use also pose threat to the global nanosatellite and microsatellite market. Furthermore, the impact of lower production and development cost will remain impressively high through the course of the forecast period. This could help the market gain pace in the near future.